Zim targets US$8 billion industrial and commercial sector

Zim targets US$8 billion industrial and commercial sector

Harare (New Ziana) –Cabinet on Tuesday approved a Roadmap to achieve a US$8 billion industrial and commercial sector by 2023, through implementation of ease of doing business reforms and Special Economic Zones.

Environment, Climate, Tourism and Hospitality Industry Minister, Mangaliso Ndlovu-who was acting in the absence of Information Publicity and Broadcasting Services Minister Monica Mutsvangwa, told a Post-Cabinet briefing that the Road-map outlined plans to raise the manufacturing and commercial sectors contribution to Gross Domestic Product from the current US$7.16 billion to US$8.03 billion by 2023, through the 94 diversified sub-sectors.

“In the interim, the sector contribution to GDP is projected to grow to US$7.4 billion in 2021 and US$7.7 billion in 2022,” he said.

“Investment and growth in the manufacturing and commercial sector will be spurred by the Ease of Doing Business reforms, and the implementation of the Special Economic Zones and the One Stop Shop concept.

“Furthermore, the country is already implementing the SADC Industrialisation Strategy and Roadmap (2015-2063); and the COMESA Industrialisation Strategy (2017-2025), which strategies are anchored on value chain development and beneficiation. The National Development Strategy 1 (NDS-1) 2021-2025, the Zimbabwe National Industrial Development Policy (2019-2023) as well as the Local Content Strategy will also buttress the Roadmap.”

Ndlovu said growth of the industrial and commercial sector will also be boosted by a number of investments scheduled for implementation under the Roadmap, since it is private-public-sector-led.

“These include twenty-three planned investments amounting to US$545 million in the food, drink and tobacco sub-sectors; US$32 million investments in the textiles, clothing and leather sub-sectors; and a total of eight projects with an investment value of US$1.5 billion in the metals and electricals sub-sectors,” he said.

“The Industrial Development Corporation of Zimbabwe (IDCZ) will play a pivotal role in the achievement of the Roadmap through availing loan capital to bankable green-field and brown-field industrial projects. Other finer details of the milestones to be achieved in each of the years of implementation will be availed annually.”

He added: “In addition to the afore-cited investments, the planned Kanyemba and Tugwi-Mukosi agricultural projects will also give impetus to rural industrialisation as well as complement the devolution agenda. Community Share Ownership Trusts (CSOTs) will continue to be used as vehicles for accelerated rural industrialisation in general. Emphasis will be given to corporate social responsibility in order to ensure that the Community Share Ownership Trusts are funded and operational.”

Ndlovu said the commercial sector was expected to grow into a US$5.2 billion sector compared to the current US$4.1 billion, on the back of increased branch networks by major wholesale and retail outlets.

“In order to enhance productivity, key enablers shall be put in place, including provision of water supply and the relevant infrastructure; and investment in the development and manufacture of information communication technology products.

“Government calls upon the financial services sector and other domestic investors to mobilise and avail the required investment capital to support the Roadmap and other development programmes,” he said.
New Ziana

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